SHRIRAMPPSNSE7 December 2022

Further to our intimation on December 5, 2022 and pursuant to Regulation 30 read with Schedule III Part A Para A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please fin...

Shriram Properties Limited

December 7, 2022

National Stock Exchange of India Limited The Listing Department Exchange Plaza, 5th Floor Plot C 1 – G Block Bandra-Kurla Complex, Bandra ( E) Mumbai 400 051 Scrip Code: SHRIRAMPPS

Dear Sir/Madam,

Sub: Investor Presentation

BSE Limited Dept of Corporate Services Phiroze Jeejeebhoy Towers Dalal Street, Fort Mumbai 400 001 Scrip Code : 543419

Further to our intimation on December 5, 2022 and pursuant to Regulation 30 read with Schedule III Part A Para A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached the presentation to be shared with the Analyst / Investors on December 7, and December 8, 2022

We request you to take the above information on record.

Thanking you.

Regards

For Shriram Properties Limited

D. Srinivasan

Company Secretary

FCS 5550

Shriram Properties Limited

Corporate Presentation December 2022

STRICTLY PRIVATE AND CONFIDENTIAL

SPL : An Introduction

Top 5 players in core markets

c.90% of portfolio2 in

About Us

Part of the well known Shriram Group

c.35% of post IPO capital held by globally renowned PEs

Among the Top 5 in South India1

c.19.5 msf over 33 projects

c.54 msf3 over 54 projects

Affordable housing and Mid Market housing segment

c.21 msf

Project

Overview

Completed projects, including of c.16% of commercial office space and luxury housing categories

Project Pipeline4

Land reserves of 197 acres with a development potential of 21 msf5

Apart from Project Pipeline

Focus on asset light model

Established DM Model

0.32x (30 Sep’22)

Business Model and Financial Resources

Asset light since inception

c.33% of pipeline projects3 in DM

76% of completed projects2 in JV / JDA / DM business models

Low Net Debt / Equity

____________________________________________________ Note: 1. As per JLL Report, in terms of number of aggregate units launched in the calendar years 2015 to 2020. 2. Of the total saleable area, as of Sep 30, 2022. 3.Of estimated saleable area. 4. Ongoing, under development and forthcoming projects. 5. In addition, the Company also entered into an agreement for an additional 73 acres in Kolkata, West Bengal.

Scaled up operating platform, poised to deliver strong results

SPL : Significant Competitive Strengths

Leadership in Core Markets

Focus on Mid Market and Affordable Housing

Strong Parentage and Established Partnerships

Experienced & Professional Management Team

Beneficiary of RERA- led industry consolidation

Asset Light Business Model

Demonstrated Execution Track Record

Strong Balance Sheet

Ideally positioned to benefit from improving industry landscape

Shriram Properties (‘SPL’): The Journey so far…

•

Creation of credible residential real estate growth platform, over the last 2 decades

– Among the Top-5 players in core markets of Bangalore, Chennai and Kolkata

– Focused Mid-Market & Affordable housing player (86% of completed projects; 90% of Project Pipeline)

– Established leader in the Southern regional markets (92% of completed projects; 83% of Project Pipeline)

Introduction of RERA, GST and Demonetization was a game changer – SPL positioned to be a Consolidator

Creation of a strong sales and execution platform – key success driver in the consolidating industry environment

– Demonstrated ramp-up capability

– Improving scale and efficiency; Margins poised to grow.

– Witnessed a turnaround year in FY22; Revenue and earnings visibility provide comfort for FY23

– Built a strong development pipeline, while remaining focused on being “Asset Light”.

Pioneered the Development Management (DM) model in the South

– 20 DM projects accounting for 33% of the project pipeline today

– 12 DM projects launched already; Accounted for ~30% of annual volumes in FY20-FY22

Significant thrust and success on monetization of landbank in Kolkata

Impressive ramp, in consolidating industry environment post RERA

SPL on High Growth Trajectory since introduction of RERA

Sales Volume (msf)

Sales Value (Rs. Mn)

CAGR 32%

3.6

3.8

CAGR 28%

14,318

14,824

3.2

3.0

2.4

11,726

11,486

12,443

1.3

0.7

4,718

3,318

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY16

FY17

FY18

FY19

FY20

FY21

FY22

Collections (Rs. Mn)

Construction (Rs. Mn)

EBITDA (Rs. Mn)

CAGR 26%

10,326

11,835

8,777

8,309

4,851

CAGR 17%

6,435

CAGR 37%

1,815

4,624

3,423

3,662

2,505

1,199

904

794

518

FY18

FY19

FY20

FY21

FY22

FY18

FY19

FY20

FY21

FY22

FY18

FY19

FY20

FY21

FY22

Demonstrated Capabilities in Project Execution

Shriram Properties has delivered

33 completed projects | c.19.5msf of Saleable Area

Completed no. of projects

2 Total saleable area for completed projects

Significant project area delivered in the 2 years before COVID

3.5

1.1

6.9

2.4

2.7

FY11-13

FY14-16

FY17-19

FY20-22

H1FY23

FY11-13

FY14-16

FY17-19

FY20-FY22

H1FY23

4.7

4.8

6.9

5.4

3.2

3.7

7.6

6.1

4.3

No. of projects

o t

s r a e y

f o r e b m u N

3 t c e j o r p e t e l p m o c

0.5 - 1.0 msf

1.0 - 1.5 msf

> 1.5 msf

Completed

Ongoing

PuD + FC

– Overall execution timeline is improving

– Ongoing project timelines are committed under RERA3

– Large projects in execution: 12 projects of > 1.5 msf

_____________________________________________________ •Note: The Total Saleable Area includes Saleable Area for which the Company does not hold any economic interest. . 2. Based on completed projects and completion date. 3. Projects considered above exclude Bengal (6 mn), commercial developments, and those less than 0.5 msf. For Completed projects, calculated as (Date of OC – Plan Sanction date/Start date as per architect certificate); For Ongoing projects, calculated as (RERA completion date – Plan Sanction date); and for Project Under Development (PuD) & Forthcoming Projects (FC) : (Est. End Date – Est. Start Date). 4. PuD + FC represents Projects Under Development and Forthcoming Projects.

Recent Highlights & Developments: H1 FY23

•

Operational Performance

Project Execution

Best-ever sales volume and sales value in H1FY23

•

Handed-over 700+ units, apart from 300+ plots

Back at 1.0+ run-rate, supported by launches and seasonal trends. H2 is even stronger historically

• On-track to hand-over ~2,000 units in FY23; to drive

strong income recognition

3 successful launches: 2 in Chennai & 1 in B’lore

• OC received for Southern Crest & Grand One

Sales-at-launch stood at ~34%

•

Completed Park63(1A) and Summit as well

DM Project share strong at 30% of H1 Sales

• Ongoing projects on-track, within RERA timelines

Financial Performance

Business Development & Project Pipeline

Strong Q2 performance, both QoQ and YoY − Revenues up 112% QoQ and 240% YoY

•

Satisfactory BD progress ; 2 projects added to pipeline − Project pipeline has 54 projects with ~54 msf dev. Potential

− EBITDA up 44% QoQ and 138% YoY

− Includes 24 msf across 26 projects in ongoing projects

Impressive H1 results YoY - revenues nearly tripled; EBITDA higher by 2.6x. Net earnings 1.7x of FY22

− 80%+ of ongoing project area is sold already as of Sep’22 • MoU with ASK for Rs.5 bn residential RE platform

Improved revenue recognition w/ OC at 2 projects

• Operational costs in control, supporting profitability

•

Significant progress in reduction of debt & costs

•

LOGOS deal progressing well

Xander DM for Gateway Office Complex completed – to enable cash inflows Rs.1.3 bn

Encouraging current performance; Reinforcing confidence in meeting full-year guidance

Operational Highlights (KPIs): Q2 | FY23

Sales Volume (Msf*)

Sales Value (Rs. Mn.)

Collections (Rs. Mn.)

Construction (Rs. Mn.)

+52%

1.01

+39%

4,345

0.66

3,126

-3%

-1%

3,242

3,148

1,370

1,351

Q1FY23

Q2FY23

Q1FY23

Q2FY23

Q1FY23

Q2FY23

Q1FY23

Q2FY23

✓ Strong QoQ growth trends - Sales volume up 52% QoQ, supported by 2 launches

✓ DM projects accounted for 30% of volumes; Share of Plotted development at 32%

✓ Sales value up 39% QoQ to Rs. 4,345 million in Q2, compared to Rs. 3,126 million in Q1FY23

✓ Gross collections stable, on track in terms of monthly run-rates

✓ Construction spend nearly flat on QoQ basis, despite excessive monsoon/unseasonal rains

✓ Handed over 700 units; on-track for handover of ~2000 units in FY23

✓ Realisation (constructed units) higher at Rs.4,924/Sqft in Q2 (vs. Rs.4,897/Sqft in Q1 & Rs.4,622/Sqft in FY22

______________________ * Msf = Million Square Feet

KPIs Half-yearly Trends: H1FY23 & FY22

Pre-Sales Volume (msf)

Sales Value (Rs. Mn.)

1.7

1.6

2.2

8,950

7,470

27%

5,874

H1FY23

H1FY22

H2FY22

H1FY23

H1FY22

H2FY22

Gross Collections (Rs. Mn.)

Construction (Rs. Mn.)

6,385

13%

5,656

6,975

2,722

2,857

3,578

H1FY23

H1FY22

H2FY22

H1FY23

H1FY22

H2FY22

Continuing growth momentum across KPIs; Business on track to meet FY expectations

Successful Launches; Impressive ‘Sales-at-Launch’*

H1 FY23 Launches

Type

Launch

Launch Area

Sold at launch

% sold

# of project launches

9 new projects & 3 new phases of ongoing projects

Park63 (2B)

New

Jun’22

534,115

56,345

Shriram Golden Acres1

Phase

Aug’22

241,646

54,804

Eden 144 – Phase 21

Phase

Sep’22

240,169

177,053

Average Sales-at-launch* (% of project launched)

21%

23%

74%

34%

H1FY23

FY18

FY19

FY20

FY21

FY22

FY23e

Impressive Sales-at-Launch

52%

48%

35%

34%

38%

34%

FY18

FY19

FY20

FY21

FY22

H1FY23

____________________________________________________________________ * Sales-at-launch = Actual sales during first 90-days of launch; 1. 2.

Shriram Golden Acres is launched in Aug’22 and Eden 144 – Phase2 in Sep’22. Hence, the sales-at-launch is computed only up to 30- Sep 22 (lesser than 90 days) SouthEast-3 launched in Feb’22; Temple Bells – Sanjeevini, Clay Grove & Divine City-2 launched in Mar’22 Sales-at-launch is computed only till 31st Mar’22 (lesser than the 90-days)

2 planned launches delayed by few weeks for approval needs, moved to Q3 FY23 8+ launches planned for H2FY23, supported by strong project pipeline

Encouraging Pricing Trends: H1FY23 realization up 5% over H2FY22

Price Increase by Project – Top Projects only

Project

Developmen t Type

Realisation Mar’22

% Change from Sep’21

Realisation Sep’22

% change from Mar’22

SouthEast Phase 2

Apartments

Southern Crest

Apartments

WYTfield – Phase 1 Apartments

WYTfield – Phase 2 Apartments

Chirping Grove – 2

Villas

One City – 1

One City – 2

Villas

Plots

Temple Bells (IV)

Apartments

Sanjeevini

Apartments

Park 63(1A)

Apartments

Park 63(2A)

Apartments

Grand One

Apartments

Sunshine One

Apartments

Sunshine Two

Apartments

4,294

6,762

5,309

5,329

6,438

3,521

1,474

3,966

3,980

6,600

6,318

3,863

3,875

3,752

10%

-2%

13%

10%

19%

18%

10%

4,639

7,191

5,565

5,408

6,501

3,832

1,691

4,045

4,402

7,577

6,168

4,020

4,015

4,294

15%

11%

15%

-2%

14%

H1FY23 Increase in Average realization

H2 FY22 Increase in Average realization

Realizations Trends by Development Type (Rs/Sqft)

2 4 9 5

3 4 0 6

0 7 1 5

4 3 3 4

3 5 1 4

0 0 9 3

6 0 2 3

9 8 7 2

6 2 0 2

✓ SPL avg realisation up 5% in H1FY23, on top of 8% hike seen in H2FY22

✓ Strong demand trends supportive of price hikes; Industry consolidation adding strength

Plots

Affordable

Mid-Market

✓ Industry-wide price improvement seen since Sep-Oct’21 and trend continued during H1FY23

H1FY22

H2FY22

H1FY23

✓ Uptrend in pricing on a half yearly timeframe seen across all our core market segments

Strong Project Pipeline; Growing Further

Project Pipeline (msf)

Ongoing – 24 msf

Upcoming Projects – 30 msf

10.3

53.8

0.3

0.9

2.2

11.2

5.3

6.6

8.3

Ongoing Owned

9.0

Ongoing JV / JDA

Ongoing DM

PuD Owned

PuD JV / JDA

PuD DM

FC Owned

FC JV / JDA

FC DM

Total

Note: FC : Forthcoming; PuD: Projects under development.

Pipeline – By Region

Pipeline – By Development

17%

22%

16%

45%

✓ Overall pipeline impressive; 54 projects with 54 msf

potential

33%

29%

✓ 24 msf ongoing and 30 msf upcoming projects

✓ 33% of pipeline in DM projects

✓ Pipeline growing further with additional projects

lined up

30%

Bangalore

Kolkata

Chennai

Others

Own

JDA

Financial Highlights : P&L Quarterly Trends

_________________ * Includes DM fee of INR 106 million, INR 181 million, INR 212 million, INR 286 million , INR 323 million and INR 1,043 million in Q2FY23, Q1FY23, Q2FY22, H1FY23, H1FY22 and FY22 respectively

Growth momentum continues; Business on track to meet FY expectations

Particulars (INR Mn)Q2 FY23Q1 FY23QoQ (%)Q2 FY22YoY (%)H1 FY23H1 FY22YoY (%)FY22 Revenue from operations* 2,586 1,222 112% 760 240% 3,807 1,182 222% 4,329 Other income 173 229 182 402 370 849 Total Revenues 2,758 1,451 90% 942 193% 4,209 1,552 171% 5,178 Cost of revenue 1,858 717 159% 430 332% 2,575 603 327% 1,823 Employee benefit expense 208 192 179 400 345 730 Other expenses 179 188 116 367 272 807 Total Expenses 2,245 1,096 105% 726 209% 3,342 1,221 174% 3,360 EBITDA 513 355 44% 216 138% 868 331 162% 1,818 Finance Costs 270 258 4% 343 -21% 528 639 -17% 1,199 - Interest expense 192 186 3% 288 -33% 379 524 -28% 940 - Unwinding Impact (non-cash charge) 55 53 50 108 99 205 - Other finance costs (net of finance income) 23 19 5 42 16 54 Depreciation 19 18 14 38 34 66 Profit before share of JV Income/(Loss) 224 78 186% (142) 302 (343) 552 Add: Share of profit/(loss) of JVs (42) 96 (99) 53 (184) (226)Profit Before Tax 182 174 4% (241) 355 (527) 326 Tax expense (14) 69 (9) 55 73 146 Net Profit 196 105 87% (232) 301 (600) 180 Financial Highlights : Balance Sheet | H1FY23

Particulars (INR Mn)

30-Sep-22

31-Mar-22

30-Sep-21

ROCE Trends (%)

Fixed Assets

Investments and loans

Inventories

Cash and Bank Balances

Other Assets

Total Assets

Less: Liabilities*

Net Assets

Equity

Borrowings

- External Borrowings

- Inter-company borrowings (from JVs)

816

1,062

21,463

1,044

10,713

35,098

18,220

16,878

11,614

5,265

4,788

477

823

1,810

728

1,918

21,882

20,626

1,405

10,418

36,338

19,597

16,740

11,309

5,431

4,811

620

422

9,240

32,934

18,315

14,619

7,668

6,951

6,201

750

11%

10%

FY19

FY20

FY21

FY22

FY23e

ROCE : Peer Group Comparison (%)**

12%

10%

9% 9%

5% 4%

Total Equity + Borrowings _________________ * Includes customer advances, trade payables, provisions excl. borrowings ** Data from respective Company financials/presentation; H1FY23 Data annualized for all except Sobha (uses FY22 data)

14,619

16,878

16,740

Strong Balance Sheet with headroom for growth; Improving Debt Equity and ROCE

Financial Highlights : Cashflows H1FY23

(In Rs Mn)

Collections

DM Income

Other Inflows

Operating Inflow

Construction Spending

Marketing & Admin Costs

Other Operating flows

New Project Investments

H1 FY23

2,729

366

3,098

(1,610)

(758)

(150)

(435)

SPL Consolidated Cashflows

FY22

FY21

Overall Enterprise Collection Trends (SPL Own& JDA / JVs / DM

5,346

721

6,073

(3,645)

(1,329)

(36)

(207)

3,202

202

3,465

(1,519)

(1,054)

(76)

(191)

12,631

3,578

3,707

5,346

6,385

1,335

2,320

2,729

9,245

2,930

3,113

3,202

FY21

Operating Outflow

(2,952)

(5,217)

(2,840)

H1FY23

FY22

Cash flow from Operations

IPO Proceeds

Loan Drawls

Loan Repayment

Net flows from borrowing

Interest expense, net

Other financing cashflows

Cash flow from Financing

Net Free Cash Flow

Opening Cash & Cash Equiv.

Closing Cash & Cash Equiv.

145

1,512

(1,666)

(154)

(301)

(51)

(506)

(361)

1,405

1,044

856

2,775

1,059

(3,349)

(2,290)

(807)

(323)

533

872

1,405

625

2,016

(2,307)

(291)

(591)

240

(642)

(17)

889

872

Own/JDA

JV's

Grand Total

•

Strong liquidity continues

Positive free cashflow from operation, even after new project investment

Higher construction outflow in line with execution progress and fueling collections.

Significant repayment, including pre-payments in the context of ongoing refinancing activities

Likely additional cashflows from scheduled completion of projects during FY23

Ongoing efforts to reduce debt and cost of debt

Gross & Net Debt Trends*

Debt Equity Ratio*

Cost of Debt (%)**

Rs. Mn

10,000

8,000

6,000

8,047 603

4,000

7,444

2,000

6,724

494

6,558

864

6,230

5,694

4,811

1,405

4,788

1,044

3,407

3,744

0.7

14.1%

13.7%

13.5%

0.3

12.5%

Mar'19

Mar'20

Mar'21

Mar'22

Sep'22

Mar'20

Mar'21

Mar'22

Sep'22

FY19

FY20

FY21

FY22

H1FY23

Net Debt

C & CE

Gross External Debt

✓ No land funding exposure

Change in Debt Composition – Sep’21 (RHP) vs Sep’22

✓ Gross Debt mostly on construction funding at project level

✓ Committed efforts to bring down debt and cost of debt

yielding desired results

• Repaid Rs.2.0 billion using IPO proceeds

• Refinanced Rs.1.03 billion SPL debt & Rs.3.8 billion JV debt

in H1FY23

• Remarkable shift in focus towards Banks, from NBFC

✓ Increment debt (JV refinancing) raised in the 9.0-10.5% range

✓ Overall cost of debt down to 12.5%; despite rate hikes seen in

some facilities during Q2FY23

✓ Focus on bringing down overall cost of debt to ~12% levels,

subject to further rate hikes at macro level

SEP-21

Banks 3%

Others 6%

AIF 3%

SEP-22

Others 6%

AIF 4%

Banks 39%

NBFC 51%

NBFC 88%

_________________ * SPL CFS Data; ** - Including cost of JV debt

Budget Housing Project of the year – Shriram South East

Property Awards of the Year Plotted Development Shriram Earth

Best Gated Community of the year – Shriram Shankari

Visionary Leader of the year (1)

Integrated Township Project of the year – Shriram Grand City

Best Efficient & Sustainable Smart Real Estate Project Shriram Greenfield

MD of the Year Real Estate Sector9

Most Admired Upcoming Project of the Year Shriram Suvilas11

Developer of the Year

Lifetime Achievement Award For Outstanding Contribution To Real Estate Sector10

GROWTH OUTLOOK GOING FORWARD

Brand Leadership Award1

Affordable Housing – Brand of the Year2

Developer of the Year3

Best Builder Residential Projects in Karnataka4

Innovative Real Estate Campaign of the Year5

Most Admired Upcoming Project of the Year6

Outstanding Project of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign of the Year for Shriram Greenfield

Innovative Real Estate Marketing Campaign Of The Year8

MD of the Year13

Residential RE Sector Outlook Strong

Strong Growth Drivers

Affordability at a new high

• Residential affordability at a multi-decade high:

- historically low interest rates - lucrative payment plans / discounts - government incentives - stable real estate prices - improving purchasing power - Improving job security

• Re-established importance of owning a home

• Renewed interest from investors and from NRIs impacted by

economic uncertainties

• Credible developers with proven execution capability and quality

products expected to survive & emerge stronger in the ‘next normal’

Source: HDFC website

Industry on a recovery path

Accelerating shift towards “larger, branded players”

New Launches

Sales Volume

Bengaluru

Chennai

(In units)

+36%

(In units)

+11%

60,307

44,447

33,953

32,863

26,785

27,060

33,480

25,583

21,832

19,640

14,780

12,654

14,415

10,753

51,849

65%

46,750

61%

63%

60%

65%

56% 55%

68%

56%

44%

35%

44% 45%

39%

40%

37%

31%

32%

6 1 Y C 1 Q

6 1 Y C 3 Q

7 1 Y C 1 Q

7 1 Y C 3 Q

8 1 Y C 1 Q

8 1 Y C 3 Q

9 1 Y C 1 Q

9 1 Y C 3 Q

0 2 Y C 1 Q

0 2 Y C 3 Q

1 2 Y C 1 Q

1 2 Y C 3 Q

55% 45%

59%

41%

65%

62%

56%

44%

52%

49%

59%

41%

35%

38%

35% 6 1 Y C 1 Q

6 1 Y C 3 Q

7 1 Y C 1 Q

7 1 Y C 3 Q

8 1 Y C 1 Q

8 1 Y C 3 Q

9 1 Y C 1 Q

9 1 Y C 3 Q

0 2 Y C 1 Q

0 2 Y C 3 Q

1 2 Y C 1 Q

1 2 Y C 3 Q

Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22

Source: JLL Research

Source: Propequity

Top 20

Rest

Top 20

Rest

Key Strategies

Leverage established relationships with financial investors for growth funding

Stay focused on mid-market and affordable housing

Build scale and enhance execution capabilities

Continued focus on core

markets of South India

Unlock value from ongoing development project in Kolkata

Enhance focus on Development Management (DM) model

Strategy and Outlook | FY23 and Beyond

➢ SPL continues to demonstrate its growth momentum delivering strong performance

➢ Operating leverage kicking-in, on the back of scale and improving efficiency

➢ FY23 to be a promising year with strengthened long-term fundamentals, for the sector and SPL

– Markets conducive for new launches with improving outlook;

–

Zero inventory in completed projects; ~80% of ongoing project inventory sold already

Strong project pipeline to support growth momentum

Launch pipeline robust with 9 potential projects in H2FY23; 3 projects successfully launched till Sep’22

Strategic Objectives

➢ Sustain growth momentum: Target 20+ % CAGR in Sales over

the next 2-3 years

➢ Unlock potential from Kolkata

➢ Emphasis on DM

Sales Volume Outlook (msf)

7.0

5.5

4.5

3.8

3.6

3.2

3.0

2.4

➢ Sustain profitability at ~22-25% ; Positive net earnings

1.3

0.7

➢ Improve and sustain RoCE at ~10-15%

➢ Cautious entry into new markets – Hyderabad

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23e FY24e FY25e

Targeting 20+ % CAGR in Sales Volume over next 3 years, supported by strong project pipeline and stabilized operating platform

Development Management (DM) Model: New Growth Engine for SPL

❑ Successfully stabilised development model, now account ~33% of Pipeline

❑ Sustainable Opportunity:

–

RERA-led changes in the industry are irreversible

Large opportunity from existing players: smaller developers/land-owners are looking to handover the project to larger player for risk issues

Fragmented land ownership : small players continue to look for larger, branded players to unlock value from land

Recent success endorses SPL’s ability to build strong DM pipeline

❑ Scalable Opportunity:

– Market being vacated by smaller developers is large enough to support significant

growth for larger players

–

SPL’s model of outsourcing construction & scaling up in-house capabilities for project mgmt. & cost control is key

SPL has created a strong platform over the last 2-3 years

– Minimal capital investments from the DM partner

❑ Profitable Opportunity – both for DM operator and landowners

–

Fees ranging from 10%-22% of total project revenues, based on services/cost structure;

Core DM 11-12% to SPL

Less competition : Large developers are balancing between unlocking value from own land banks and projects

Low risk profile given low capital investment

– Doesn’t involve land valuation constraints, and provides next best return to landowner

after outright purchase

DM Portfolio # projects Area (msf) 2.0 Completed 6.6 Ongoing 0.9 PUD 10.3 Forthcoming 19.7

1 12 1 7 21

DM Volumes (msf)

1.05

1.06

0.83

0.69

0.49

FY18

FY19

FY20

FY21

FY22

DM Revenue (Rs. Mn.)

14%

23%

20%

1,142

1,081

871

571

FY19

FY20

FY21

FY22

Strategies for Unlocking Potential from Kolkata Progressing Well

Kolkata - Integrated township in Uttarapara – 314 acres, 33.5 msf saleable area

Development Strategy

Own development of c.10msf over next 3-5 years

Monetising remaining land bank c.22msf

Development Status Update

Monetisation Update

❑ Shriram Grand-1: (2.1msf, almost entirely sold)

– Handover progressing in some clusters; To deliver 600

FSI sale progressing well; MoU with LOGOS, integral part of the strategy

units in FY23

– Construction in full swing in other clusters

LOGOS Deal – Progressing well, Expected to complete in H2FY23

❑ Shriram Sunshine: (2.3msf, launched in 3 phases)

❑ MoU for a potential sale of up to 90 acres of land;

– Already sold ~98% of Phase-1 and 43% of Phase-2

❑ Deal at an advanced stage

(aggregate 1.05msf)

❑ Upcoming : ~5.5msf to be launched over next 3 years

❑ LOGOS to develop a Logistics Park offering ~ 2.2msf

❑ Expected to generate 50,000 of local direct and indirect jobs in

West Bengal

Strong Income Recognition Outlook (FY23-25e)

Sales Volume (msf)

3-year cumulative sales of 10msf

3.8

3.2

3.0

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

Ongoing Projects – By Region (msf)

9.2

5.6

…

10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 -

FY20

FY21

FY22

Bangalore

Chennai

Kolkata

No. of units handed over

Project Completion Trend1 (msf)

2,885

6.9

2,093

3.5

2,280

2.4

No. of projects

10.7

Likely to handover ~2,000 units in FY23; Already handed over 700+ constructed units in H1FY23

✓ SPL to complete & deliver 10+ msf in next 3 years; Largely reflecting sales ramp-up in last 3 years ✓ Construction progress encouraging and projects mostly on track ✓ Sharp rise in handovers to improve revenue recognition potential over next 3 years; 2,000 units to be

FY14-16

FY17-19

FY20-22

FY23-25E

handed over in FY23

_____________________________________________________________________________________ 1 Completed projects based on timing of receipt of Occupancy Certificate while there would be a lag in handing over of individual units

Investment Summary

8. Access to Capital

➢ Strategic relationships with domestic and

international financial investors

➢ Early recipient of FDI in the sector

1. Corporate Governance

➢ Shriram Group DNA and marquee investor presence for a decade contribute to strong governance and transparency practices

7. Low Leverage

➢ Well capitalized, with leverage levels of 0.32x1

6. RERA Beneficiary

➢ Well-positioned to benefit from RERA and

industry consolidation

➢ Built deep project pipeline

➢ Proven ability to manage partnerships to help

build pipeline

5. Scalability

➢ Asset light and highly scalable business model

with DM being core part of strategy

➢ Strong organisational build up in past few years

2. Trust and Brand

➢ ‘Shriram’ brand benefits from strong trust and

recall among target customers

3. Track Record

➢ Robust execution track record; have delivered 33

completed projects

4. Strong Growth Outlook

➢ Visible growth pipeline with continued focus on

mid-market & affordable segment

➢ Demonstrated ability to ramp-up sales volumes

➢ Core strategy unchanged – Focused on mid- market and affordable housing in South India

___________________________________________________ Note: 1. As of Sep 30, 2022. Net debt calculated as (Gross debt – Cash & cash equivalents). Gross debt excluding unsecured inter-company loans (from JVs)

Well-positioned to navigate key challenges of the real estate industry

THANK YOU

Annexure

Shriram Summit

Projects Snapshot by Development Models | Ongoing Projects

Ongoing Projects(June 2022)

Own Developments

Joint Development Agreements

Joint Ventures

Development Management

Saleable Area (msf)

SPL Share (msf)

Sold Area (msf)

To be Sold (msf)

Value (Rs. Mn.)

Value of sold units

Collections from sold units

Collections to be made from sold units (A)

Estimated receipts from unsold flats (B)

Estimated receipts from sold & unsold units (A+B= C)

Costing (Rs. Mn.)

Estimated total cost (D)

Cost incurred (E)

Remaining cost to be incurred (D-E = F)

Gross Operating Cash Flows (C-F = G)

Present Borrowings (H)

Projected Net Operating Cash Flow (G-H)

Economic Interest

8.2

6.9

1.3

25,456

11,537

13,919

6,122

20,041

15,909

4,561

11,348

8,693

2,623

6,070

100%

5.4

4.2

4.1

0.1

11,030

7,017

4,013

418

4,431

6,021

4,966

1,055

3,376

2,164

1,212

6.5

4.4

2.2

16,099

9,745

6,354

12,162

18,516

Cost is borne by the landowner and doesn’t impact our cashflows

3.7

2.7

1.0

11,907

5,300

6,607

4,440

11,047

8,104

2,847

5,257

5,790

4,047

1,743

As per agreement with landowner

50% of Cash Flows

10% to 12% of Revenue

Projects Snapshot by Development Models

Own Developments

Joint Developments

Joint Ventures

Development Management

Execution Track Record

Completed ✓ 6 projects ✓ 4.7 Mn Sq. Ft.

Ongoing Projects ✓ 7 Projects ✓ 8.3 Mn Sq. Ft.

Under Pipeline ✓ 7 Projects ✓ 7.4 Mn Sq. Ft.

Completed ✓ 23 projects ✓ 10.7 Mn Sq. Ft.

Ongoing Projects ✓ 4 Projects ✓ 5.3 Mn Sq. Ft.

Under Pipeline ✓ 12 Projects ✓ 10.6 Mn Sq. Ft.

Completed ✓ 3 projects ✓ 2.1 Mn Sq. Ft.

Ongoing Projects ✓ 3 Projects ✓ 3.7 Mn Sq. Ft.

Under Pipeline ✓ 1 Project ✓ 0.8 Mn Sq. Ft.

Completed ✓ 1 project ✓ 2.0 Mn Sq. Ft.

Ongoing Projects ✓ 12 Projects ✓ 6.6 Mn Sq. Ft.

Under Pipeline ✓ 8 Projects ✓ 11.1 Mn Sq. Ft.

Economics of Different Real Estate Development Models

Description

ORP/Passive Seller Assumptions

Land area

FSI

Project SBA

Land cost /Historical cost in the Books of LO

JDA share % Revenue sharing

Developers Share SBA

Average selling price (sft)

Average Cost of construction (sft)

Approval cost (per sft)

Selling and marketing cost

Other overheads

Working Capital

Rate of interest

Average period outstanding years

DM Fees %

Refundable deposit in case of JDA (INR Mn)

Land owners receipts and returns Landowners receipt

Interest opportunity cost on Refundable deposits @ 12% for average period of 2 years Pre tax cash received

Time line

Average months during which the money received

Discounting rate

Present value

8.00

2.15

750,000

750.00

5,681

2,213

125

0.05

0.04

450

13%

2.50

750

Immediate

12%

750

OWN

8.00

2.15

750,000

90.00

5,681

2,213

125

0.05

0.04

450

13%

2.50

1,978

JDA

8.00

2.15

750,000

25%

5,681

2,213

125

0.05

0.04

450

13%

2.50

100.00

1,065

30.00

8.00

2.15

750,000

90.00

5,681

2,213

125

0.05

0.04

450

13%

2.50

11%

1,509

1,978 Spread over 48 months 30

12%

1,467

1,065 Spread over 48 months 30

12%

790

1,509 Spread over 48 months 30

12%

1,119

For further information, please contact:

Company :

Investor Relations Advisors :

Shriram Properties Limited CIN – U72200TN2000PLC044560 Mr. Vineel Naidu, General Manager – Finance & Accounts Email Id – vineel@shriramproperties.com

www.shriramproperties.com

Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285 Mr. Rahul Agarwal rahul.agarwal@sgapl.net +91 98214 38864 www.sgapl.net

← All Transcripts SHRIRAMPPS Stock Page →

Further to our intimation on December 5, 2022 and pursuant to Regulation 30 read with Schedule III Part A Para A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please fin...

Market Movers